The “Cruel summer” singer’s “Eras Tour” has increased revenue for hotels across the U.S. according to data provided by investment firm Bernstein. And the so-called Swift-lift could be seen around the globe as the tour goes international.
“This has been a notable boost to the hotel industry,” Bernstein analyst Richard Clarke wrote in a note to clients Friday, using the term “Swiftonomics. The average revenue per room in the U.S. during Swift’s tour was 4 percentage points higher than the benchmark national rate, according to Bernstein data. In these states, revenue per room was up about 7% in average during the months that Swift visited compared to the same period a year earlier. (The revenue generated per room is calculated when you divide the total hotel revenue divided by the number of rooms available, regardless if they are occupied. Clarke says that the increase in revenue can be attributed largely to the higher room rates, but bookings have also increased in many cases. Nashville, for example, saw hotel occupancy increase by more than 30% on concert nights and room rates rise by more than 50%. Clarke said Swift’s tour has an international leg, so other countries will also be able to benefit from the Swift-induced bump. But he said other countries will have their chance at feeling the Swift-induced bump given the tour has an international leg.
Meanwhile, Bernstein found a relatively muted — though still notable — impact on hotels from Beyonce’s “Renaissance” tour.
Bernstein’s analysis follows months of anecdotal reports about the economic boost from the tours, as well as other popular culture events this summer. The concerts have caught the attention of Wall Street and the Federal Reserve, which specifically noted high hotel bookings during Swift’s stop in Philadelphia.
“Despite the slowing recovery in tourism in the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic,” Fed officials wrote in the July beige book, which summarizes economic activity. This is “in part” due to the influx of tourists for the Taylor Swift concert in the city. “
Indeed, Clarke said occupancy was 11% higher in Philadelphia during the nights of Swift’s tour, while revenue per available room was up 59% on average.
Swift announced last week that a filmed version of her tour would premiere in theaters in October.